Labour are happy to borrow £30bn a year, says IFS chief

Labour could still be borrowing £30 billion a year at the end of the next parliament, the head of the Institute for Fiscal Studies said yesterday.

The assessment came as the SNP set out its priorities for Westminster if it holds the balance of power after the general election, promising to support Labour’s pledge to reintroduce the 50p top rate of tax for those earning over £150,000.

Nicola Sturgeon, the Scottish first minister, also used a speech to her party’s spring conference to suggest that she would support some form of “responsible” deficit reduction, narrowing the gap further with Labour.

Labour’s borrowing plans came under scrutiny from Paul Johnson, the director of the IFS, who said that the party’s plans could mean a Labour-led government…